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Griffon (GFF) Dips More Than Broader Markets: What You Should Know

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Griffon (GFF - Free Report) closed at $31.25 in the latest trading session, marking a -1.88% move from the prior day. This change lagged the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the garage door and building products maker had lost 3.28% over the past month. This has was narrower than the Conglomerates sector's loss of 11.17% and the S&P 500's loss of 8.68% in that time.

Investors will be hoping for strength from Griffon as it approaches its next earnings release. On that day, Griffon is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 154.55%. Our most recent consensus estimate is calling for quarterly revenue of $703 million, up 23.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.74 per share and revenue of $2.84 billion. These totals would mark changes of +120% and +15.52%, respectively, from last year.

Any recent changes to analyst estimates for Griffon should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.71% lower. Griffon is currently a Zacks Rank #3 (Hold).

Investors should also note Griffon's current valuation metrics, including its Forward P/E ratio of 8.52. This represents a discount compared to its industry's average Forward P/E of 15.03.

The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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